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GTAP Resource #5747

"EU Agricultural Domestic Support in Global Value Chains or Where Does the Money Go?"
by Flaig, Dorothee and Kirsten Boysen-Urban

Domestic support to agriculture constitutes an important part of European Union (EU) policies. With trade and especially in the framework of global value chains (GVCs) the question arises as to what extend each part of the value chain benefits from a subsidy. We track subsidy flows by combining techniques of value added decomposition originating from GVC analysis with detailed agricultural domestic support data for the EU. This allows us not only to track subsidy flows inside the EU, but also those that are incorporated in exports to the rest of the world. EU domestic support is often blamed to hurt African farmers. To get an idea on the importance of this argument from the demand side, we analyse the contribution of European agricultural domestic support for final demand in African countries. Results show that EU subsidies are “traded” substantially within the EU, but an unneglectable share is also captured by non-EU countries.

Resource Details (Export Citation) GTAP Keywords
Category: 2019 Conference Paper
Status: Published
By/In: Presented at the 22nd Annual Conference on Global Economic Analysis, Warsaw, Poland
Date: 2019
Created: Flaig, D. (4/11/2019)
Updated: Flaig, D. (4/11/2019)
Visits: 1,656
- Agricultural policies
- Domestic policy analysis
- European Union

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